Foreign Investors Withdraw Rp 8.52 Trillion from Stock Exchange; What Lies Ahead for IHSG This Week?

JAKARTA, KOMPAS.com - Selling pressure from foreign investors in the capital market reached Rp 8.52 trillion at the end of May 2026. The majority of this was driven by technical factors related to Morgan Stanley Capital International (MSCI) rebalancing.

However, the direction of the Composite Stock Price Index (IHSG) this week is not solely determined by the end of these selling actions.

Capital market observer and Founder of Republik Investor, Hendra Wardana, believes the market needs something more important: clarity and consistency in economic policy. Foreign investors in particular are believed to be seeking certainty in placing their funds.

According to him, when the government is able to provide clear policy direction in areas such as fiscal management, regulatory stabilisation, downstream processing strategy, and support for the investment climate, market confidence levels will increase.

“Policy clarity is deemed capable of reducing Indonesia’s risk perception, thereby creating opportunities for capital inflows to return to the domestic stock market,” Hendra told Kokpas.com on Monday evening (1 June 2026).

For foreign investors, rupiah weakness not only reduces the potential returns on stock investments but also increases the exchange rate risk they must bear.

As a result, despite Indonesian share valuations appearing relatively cheap, some global investors are still choosing to wait until the rupiah shows more convincing signs of stabilisation.

However, any strengthening is expected to proceed gradually as the market still faces a number of challenges, ranging from rupiah weakness, uncertainty over the direction of global interest rates, to geopolitical dynamics that could affect international capital flows.

“In other words, the elimination of rebalancing-related pressure does not automatically make the market turn bullish,” he explained.